As 2026 unfolds, WA’s property market is entering a more complex phase. Interest rates, affordability and buyer confidence are now exerting real influence. This year isn’t about runaway growth or sudden correction - it’s about adjustment. Drawing on current market data and on-the-ground insight, Realmark Founder John Percudani outlines the key forces likely to shape property decisions in 2026.
1. Perth’s momentum stays real, but growth is moderating
In January, Perth home values jumped around $20,000 in a single month, signalling demand remains strong. Projections still place Perth ahead of many east coast capitals in 2026, with continued growth across houses and units. However, the market is shifting away from urgency-driven decision-making, with less FOMO and more considered buyer behaviour emerging as conditions tighten.
2. Interest rate shifts will shape buyer behaviour
The Reserve Bank’s latest rate increase signals a shift toward tighter monetary settings. While largely anticipated, the move reduces borrowing capacity and places renewed pressure on mortgage serviceability. This is likely to moderate buyer activity in more price-sensitive segments, even as demand and constrained supply continue to support overall values.
3. Supply scarcity remains a core driver and restraint
Markets like Perth and Brisbane continue to see fewer homes listed for sale relative to demand. This scarcity supports pricing, but it also intensifies affordability pressure, particularly for first-time and moderate-income buyers. Fierce competition is likely for quality stock, helping keep price growth steady rather than triggering a sharp slowdown.
4. Affordability will be the real test for everyday buyers
As median values push higher, the tension between demand and affordability will sharpen. Forecasts point to national growth of 6–8% in 2026, with Perth potentially stronger. But higher mortgage costs will narrow the margin for buyers, shaping who can act and how deals are negotiated. This won’t be a year of collapse - it will be one where affordability increasingly shapes opportunity and negotiation power.
5. Market performance is becoming more selective
The market is increasingly differentiating by location, asset quality and price point. Well-located homes and quality apartments continue to attract depth of demand, while more rate-sensitive segments face greater scrutiny. Forecasts pointing to stronger unit price growth highlight the role of scarcity, rental pressure and downsizer demand, reinforcing the importance of asset selection as market conditions become more disciplined.
In summary, you don’t need to buy into a boom narrative - you need clear, grounded insight. Conditions in 2026 are evolving, shaped by strong demand, constrained supply and a tightening interest rate environment. Opportunity remains, but it sits alongside greater discipline. Competition will remain strong for the right stock, borrowing costs will matter more than last year, and price growth will be driven by fundamentals, not speculation.
This article was originally published in The Real Estate Conversation.